An entrepreneur’s workforce grows either through fresh hires or through the acquisition of companies that bring along new employees. Whether your organization is a large multi-national in a complex mergers and acquisitions (M;&A) transaction or a start-up looking to acquire a 2-person corporation with a new development line or skill set, the employment law implications are complex, yet largely the same.
In unionized industries and in particular the construction sector, there are well established rules governing when multiple companies can be considered a single employer under the law. Dozens of multiple employer applications per year are brought in Ontario alone. The same cannot be said about common employer determinations in the non-unionized sector. However, a recent case heard by the Ontario Superior Court of Justice dealt with such a situation.
Two recent cases have confirmed a long-standing principle: in order to be effective, notice of dismissal must be clear, specific and unequivocal. Among other things, a definite terminate date must be specified. Otherwise, in most cases, the “notice” will not be effective, and the employer will be on the hook for additional notice or pay in lieu thereof.